The Dumpling Bros
minimum investment: Free!
Texas’ only Korean dumpling truck expands in booming college town
One of the top-rated food trucks in one of the fastest growing cities in the country, The Dumpling Bros (TDB) is ready to begin operations on its second vehicle.
TDB specializes in authentic, hand-made Korean dumplings (also called “Mandu”). The recipe has been passed down through generations, making its way from Seoul, Korea to Queens, NY to Denton, TX. The team prides itself on preparing everything from scratch using fresh, locally-sourced ingredients.
Funding targeted by 7/3/2017
Loan/p>Minimum investment: $100
TDB’s home base is in downtown Denton, approximately 30 miles north of Dallas-Ft. Worth and home to both The University of North Texas (35,000+ students) and Texas Woman’s University (15,000+ students).
Its unique offering of Korean-style dumplings along with a variety of other street-influenced Korean cuisine make it one of the only Korean food options within 20 miles and the only Korean dumpling food truck in the state of Texas. John’s cooking talents, developed under the tutelage of his late father Chef Thomas Kang, are now flourishing with TDB.
Normally stationed near Eastside Drafthouse, TDB has also established a rotation at local food truck parks, farmers markets on weekends, and various festivals and events. In 2016, the truck began servicing site visit requests (organizations, corporate, events, and etc.), increasing revenue by 30%. In addition to University and corporate relationships, the team has expanded its services to 90% of the Denton Independent School District and both major hospitals in the city. A second truck will allow the business to meet the growing demand for its catering services, continue cultivating its base of loyal clientele in the Denton community, and expand its reach into the greater Dallas metroplex. The Issuer expects revenue to double with the increased capacity and improved scale.
Voted among the Top 3 food trucks in Denton in 2017.
The Dumpling Bros is more than just a growing business; it is a business deeply devoted to serving the Denton community. TDB is built upon its core values of Faith, Integrity and Love. The truck serves as a platform to pay forward the support John has received by being a source of positivity for others in the community.
TDB strategically rents its kitchen-commissary from Zera Coffee Company. Zera is part of The Denton Freedom House’s rehab program, designed to provide work training and embed community service into the members’ lives as part of their redemption. TDB’s rent contributes towards the program, and TDB employs select graduates from the Freedom House to give them a second chance.
The Dumpling Bros is a food truck business operating out of Denton, TX. The truck serves the community of Denton including the 50,000+ students at the local universities. Since TDB’s inception in October 2015, its presence in food truck parks has accounted for the majority of its revenue and reach. The Dumpling Bros food truck is located minutes away from both the University of North Texas and Texas Woman’s University, and both student populations have been big supporters of TDB. Catering and requested site visits have slowly grown, as private companies and organizations have increased their requests for TDB to service their luncheons and events. The truck serves both hospitals in the city and 90% of schools in the Denton Independent School District.
Currently, TDB is restricted by a desire to serve its normal food park rotation and provide its loyal customer base with a consistent presence. With an additional food truck, TDB will be able to maximize its catering and special on-site services while continuing to support its core base. Catering and site visits comprise just 25% of existing revenue, and there is a significant opportunity for growth within both the existing market and the greater Dallas-Fort Worth metroplex. Aside from a small café on UNT’s campus, the next closest Korean cuisine option is over 20 miles away. In addition, The Dumpling Bros is the only Korean dumpling food truck in the state of Texas. The team plans to continue its expansion to grow its presence in the Dallas-Fort. Worth area and beyond.
TDB has also developed a frozen, pre-packaged dumpling offering. This product is currently sold from the food truck exclusively, but the team has been testing the product’s viability through both e-commerce and has begun exploratory conversations with grocery retailers. The Dumpling Bros utilizes Internet marketing, cross-promotion, sponsorships, and word of mouth to promote the business. Most of TDB’s fans communicate with the truck through Facebook (over 2,500 followers in one year), Instagram, and Twitter. The team also attends local farmers markets and plans to attend trade shows once the second food truck is launched.
The Dumpling Bros opened for business in October 2015. Through the end of 2016, the business had grossed over $155,000 in revenue, and it plans to reach $200,000 in gross sales in 2017 with its single truck. With an additional truck, the team forecasts $450,000-$500,000 in combined gross sales by 2018 with continued growth driven by the addition of new trucks and scaling of operations. TDB’s team is comprised of 7 full- and part-time staff, including the owners. With its relationship with The Denton Freedom House, TDB is able to staff up quickly as needed.
Use of Funds
The Dumpling Bros is ready to grow and further build out its infrastructure.
The team purchased a second truck earlier in the year, and funding proceeds raised on NextSeed will be put towards outfitting the truck to make it fully functional. Proceeds will also be used to upgrade its commissary (purchase equipment) and provide additional working capital for the business’ operations.
Any additional funds above the minimum target will be put towards marketing, packaging, distribution, and online sales operations.